Question: Intermediate Accounting I INSTRUCTIONS Prepare a multiple-step income statement based on the following account balances: Sales $1,300,000 Allowance for doubtful accounts 45,000 Bad debt expense
Intermediate Accounting I
INSTRUCTIONS
Prepare a multiple-step income statement based on the following account balances:
Sales $1,300,000
Allowance for doubtful accounts 45,000
Bad debt expense 30,000
Beginning inventory 40,000
Ending inventory 30,000
Depreciation expense 90,000
Dividends declared 25,000
Freight in 20,000
Freight out 18,000
Loss from discontinued operations 80,000
Loss from earthquake damage 22,000
Loss from sale of Available for Sale securities 7,000
Lottery winnings 50,000
Prepaid insurance 25,000
Purchases 600,000
Purchase returns 20,000
Purchase discounts 10,000
Rent expense 100,000
Salary expense 240,000
Sales returns 20,000
Sales discounts 8,000
Unrealized loss from Available for Sale securities 42,000
Unrealized gain from Trading securities 25,000
Unearned rent revenue 15,000
Income tax rate 20%
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